Increasing affordability for end consumers has been a critical driver of plant-based adoption, particularly in middle-income countries. The cost of alternative protein production is expected to reach price parity with traditional meat by 2025, and even undercut the prices by 2030. Moreover, improving the quality of plant-based products is further accelerating the mass adoption of alternative proteins globally.
At the current rate, the alternative protein market is expected to record double-digit growth annually, with the expectation to reach a market value of US$153 billion by 2030. Both affordability and improved quality of plant-based products have resulted in this wide adoption, which has called for innovation and strategic partnerships in the segment to serve the surging demand.
Taco Bell partnered with Beyond Meat
Food businesses are quickly pivoting and changing their strategies while incorporating alternative plant-based proteins to stay ahead of the curve. Recently, food giantTaco Bell has partnered with plant-based giant Beyond Meat to develop and explore a new plant-based protein. While there has been no revelation about the new product that the partnership aims to explore, the gigantic strategic collaboration depicts the surging demand for plant-based food.
In the United States, almost 6 out of 10 consumers have either adopted a part-time vegan diet or a plant-based diet. Looking at the latest plant-based push, Taco Bell has launched a new meatless protein made from chickpeas and peas in the US market. Over the next year, the fast-food giant aims to ramp up its existing meatless options in the country for serving the growing demand.
Cargill’s strategic partnership with Bflike to enter plant-based market
In April 2021, Cargill has partnered with Bflike – a startup from the Netherlands – which licenses its ingredient solutions and proprietary technology to food companies. With this partnership, Cargill is looking to strengthen its position in the plant-based food alternatives market while enjoying a more affordable and faster route.
The 50 - 50 strategic partnership between the plant-based startup and agribusiness leader has benefits for both. Bflike will bring its technology and recipes, whereas, Cargill will be leveraging its established ingredient and food solutions capabilities. Moreover, plant protein producers and retailers who are looking to license food technology from Bflike will also benefit from this strategic partnership with Cargill.
Through this partnership, Cargill is looking to exceed the expectations of the consumers, while enriching their diets with a more sustainable option in different geographies.
Unilever’s The Vegetarian Butcher partnered with Burger King
After experiencing strong growth in Europe, Unilever’s plant protein brand The Vegetarian Butcher entered into a strategic partnership with Burger King in January 2021 - to expand its product line in Latin America, China, and the Caribbean.
Entry into these new markets is part of the expansion plan, which follows the launch of The Vegetarian Butcher’s plant-based Whopper in UAE, Oman, Morocco, and Saudi Arabia. By expanding their partnership with Burger King, Unilever aims to reach a global annual sales of US$1.2 billion from its plant-based product line within the next 5 to 7 years.
The two-year-old partnership between the two brands which is continually expanding with each quarter, has meant that The Vegetarian Butcher's plant-based product is now sold across 325 outlets in China alone. Hence, by expanding its partnership with Burger King, it will only open new growth avenues for the plant-based brand in the future.
Meat mega JBS acquires plant protein brand Vivera
Plant-based meat alternatives have been growing annually at the rate of 15.8% as the trend of flexitarian diet continues to grow worldwide. As a result, a number of large food retailers and conglomerates are pivoting quickly towards plant-based products to stay ahead of the curve.
JBS – a Brazilian meat giant – recently acquired Dutch plant protein brand Vivera for an enterprise value of US$410 million. This acquisition is expected to help the Brazilian meat giant to strengthen its position in the global plant protein industry.
On one hand, the Dutch startup will give JBS a stronghold in the plant protein segment with its technology and capacity for innovation. Whereas, on the other hand, joining forces with JBS will provide significant resources to Vivera. Therefore, allowing the company to accelerate its current growth trajectory. Currently, Vivera has over 50 plant protein products which are being sold across 27,000 European outlets .
SunOpta acquires WestSoy and Dream and expands to meet dairy-free demand boom
In April 2021, SunOpta – the North American plant-based manufacturing giant – has announced the expansion of its manufacturing capacity to keep with the growing consumer demand. This expansion from SunOpta comes after the recent acquisition of WestSoy and Dream from the Hain Celestial Group in a deal amounting US$33 million.
The acquisition of WestSoy and Dream is part of the company's strategy to become the leader in the fast-growing alternative dairy segment. With the company manufacturing plant-based dairy products for many leading brands, more such acquisition can be expected from SunOpta. The company has already announced that 2021 is the year for accelerating growth. Thus, more such acquisitions are expected to follow in the near future.
ADM and Bühler and Givaudan plant-based innovation lab in Singapore
To meet the rapidly growing plant protein demand in Asia, ADM has opened a new plant-based innovation lab in Singapore in April 2021. With this new research facility, the American food conglomerate aims to bring new plant protein products and solutions to the Asian market. Recently, the food giant has been continuously investing in the plant protein sector to find new ways to solve the ever-changing consumer preferences and taste requirements. And the launch of the new facility in Singapore is a reflection of their commitment.
In addition to ADM, Bühler and Givaudan also joined forces together to open a plant-based innovation center in Singapore. Through their partnership and newly launched innovation center, both companies want to create an ecosystem that will provide support for food businesses and startups.
Apart from this Givaudan also launched its AI (Artificial Intelligence) tools which will help plant protein producers identify positive and negative flavor drivers. Therefore, facilitating plant protein manufacturers in better development of future plant protein products.
Kellogg launches new plant-based product
As the demand for plant-based vegan food continues to surge, American food major Kellogg has launched a new plant-based meat alternative in the US market. In the United States alone, plant-based sales reached an all-time high of US$7 billion in 2020. As a result, Kellogg has ramped up its plant protein offerings in the market. Furthermore, the largest cereal producer in the world has partnered with leading US supermarkets such as Walmart, HEB, Kroger, and Meijer to distribute its plant-based product line.
